The opening up of Islamic banking sector is credit positive for the local banks, as expansion into Islamic banking has the potential to strengthen their franchises and diversify revenue generation, said Moody's Investors Service in a new report published yesterday. The industry, however, will still need to manage various challenges to deliver the anticipated growth, added Moody's.
Moody's expects that the IFIs will manage to address these challenges over the medium-term and build solid franchises and diversify revenues through the provision of additional services to customers in Oman and regionally. "While we expect that competition will intensify as new Islamic banks come into the market, we do not anticipate any substantial changes in the Omani banking landscape," noted Elena Panayiotou, Assistant Vice President and co-author of the report. "The new Islamic windows of the existing conventional banks will be well-positioned to capture a significant share of the Islamic banking market given their ability to leverage their existing customer bases and infrastructure," explained Panayiotou.
(Times Of Oman / 27 Aug 2013)
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com